confused as to where extra money goes to ?

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dave.28

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Post by dave.28 » Thu Jul 15, 2010 9:36 am
I am currently entering my third year of a Iva. i have been told that i have earned extra money due to a increment rise in my wages over the last two years. so i am paying 50 percent of this into my Iva. I have been told that this does not come of my iva amount. So where does this money go and why doesnt this reduce my overall debt? i am quite confused as to where this money goes to! Any help would be much appreaciated.
 
 

Tina Shortland

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Post by Tina Shortland » Thu Jul 15, 2010 9:39 am
Hi Dave,

Any additional funds you are paying into your IVA should go towards the overall return. Unfortunately only your own IP can clarify what happpens to the funds as they know your case in full detail.

Leet us know what they say!

Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

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If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
 
 

plasticdaft

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Post by plasticdaft » Thu Jul 15, 2010 10:17 am
Your extra payments wont reduce the time you pay your IVA,unless you manage to repay your debts in full,plus fees. Your extra money will still go to creditors,it just means they will get more than was originally planned.

Are you with one of the larger IVA companies?

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

carole2662

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Post by carole2662 » Thu Jul 15, 2010 3:33 pm
I thought that extra money just increased the pence in the pound you paid back.
 
 

kallis3

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Post by kallis3 » Thu Jul 15, 2010 3:52 pm
You're right Carole as far as I am aware . Anything extra paid across goes towards your total debt.
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MelanieGiles

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Post by MelanieGiles » Fri Jul 16, 2010 12:51 am
The ultimate aim when you enter into an IVA should be to maximise the return to creditors - so any additional funds that you pay over will increase their dividend and lessen the amount that they have to write off.

Well done to you to be making sure you are paying the most you can afford.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Adam Davies

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Post by Adam Davies » Fri Jul 16, 2010 8:06 am
Hi
The money will go to your creditors and will increase the amount that they receive over your IVA retm, as Melanie states it will mean that they write off less debt at the end of your IVA
Regards
Andam Davies
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